Silver Soars To Record High, Far Outpaces Gold In 2025 — What's Driving The Rally?

Silver surged past $60 an ounce for the first time, hitting a fresh record of $60.9213 on Wednesday after a 4.3% jump in the previous session, as traders bet on further monetary easing and grappled with persistent supply tightness.

The white metal has been the standout performer this year, delivering 107% year-to-date gains, far outpacing gold’s 59% rise.

Renewed expectations of a Federal Reserve rate cut in December have boosted sentiment. Lower interest rates reduce the opportunity cost of holding non-yielding assets like silver, making it more attractive to investors.

With the big Fed day upon us, and with the likelihood of a rate cut looking stronger, gold and silver prices are expected to edge higher, say analysts. There is an 89.4% probability of benchmark rates being slashed by 25 basis points, according to CME FedWatch.

Silver faces its fifth consecutive year of supply squeeze, amplified by a historic shortage in London in October. Inventories in Shanghai are near their lowest level since 2015, adding to bullish momentum.

Industrial consumption of silver has grown steadily over the past eight years, driven by sectors like electronics, solar panels, and EV components.

• 2016: 489.5 million troy ounces

• 2024: 680.5 million troy ounces

With strong fundamentals and macro tailwinds, silver’s rally underscores its dual role as an industrial metal and a safe-haven asset — positioning it as the star performer of 2025.

In a note released on Tuesday—a day before the Fed decision—Geojit Investment analysts saw silver March futures' immediate resistance at 1,83,141 per kg. In case of a further upside, the resistance may shift to Rs 1,84,540 and Rs 1,85,785.

They further indicated immediate support for the precious metal at Rs 1,80,497 per kg on the MCX. Any further decline will lead the support levels to go as low as Rs 1,79,252 and Rs 1,77,853.